Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I purchased a piece of equipment from a German co. gave them…

Customer Question
Hello I purchased a...

Hello I purchased a piece of equipment from a German co. gave them a deposit of app $40k and now they are filling for insolvency.

Accountant's Assistant: Has anything been filed or reported?

Yes they sent me a document from a court in Dresden Germany that they are insolvent

Accountant's Assistant: Since laws vary from place to place, what state is this in?

We are in Massachusetts, and the co. is located in Olbernhau Germany. The court they used is in Dresden Germany

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

That about sums it up

Submitted: 11 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 28 minutes by:
9/13/2017
Tax Professional: Stephen G., Sr Income Tax Expert replied 11 months ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 11 months ago

If you're asking what to do tax wise with the loss of the deposit, you would be entitled to a short-term capital loss.

Had the loss been the result of a default on an obligation in connection with a trade receivable, ie. for business conducted or services rendered) then the loss could be claimed as a business bad debt (ordinary deduction).

Since this was a cash deposit on equipment, it qualifies as a capital loss only.

Let me know if you have any follow-up questions.

Please remember to rate my response.

Thanks very much,

Steve G.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
7,469 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am a US-based freelance writer, and I am about to begin
Hello, I am a US-based freelance writer, and I am about to begin work for a company that is based in Germany. I am not sure if I need to report taxes on that income or how I should approach taxes with… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,435 satisfied customers
I was just reading this question about the alimony between
i was just reading this question about the alimony between US and Germany, I would like if you could help me figure out my situation … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
When my parents passed away about 50 years ago I inherited
Second opinion] When my parents passed away about 50 years ago I inherited about 98,000 dollars. I deposited this money in a German Bank account in Germany. Now I want to transfer the money into My Ci… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am 64 y/o receive a SS monthly pension. I will turn 65 on
Hi, Sir or Madam: I am 64 y/o receive a SS monthly pension. I will turn 65 on December 30, 2017. On April 2016 I married a German Citizen and I be moving end of December 2017 to Germany. What are the … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
565 satisfied customers
I have a question for Lane, is he online to provide help at
I have a question for Lane, is he online to provide help at this time? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I'm foreigner and have a website (online service). I created
I'm foreigner and have a website (online service). I created Delaware C Corp, there are 3 founders, all of them are foreigner. The company doesn't have any employees. We plan to buy 3 laptops for us i… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
Lev. I'm preparing my partner's tax return. She received
Hello Lev. I'm preparing my partner's tax return. She received disability income from the German government in 2014. I'm not sure how to interpret the Germany-US tax treaty, amended in 2006 apparently… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Trying to figure out how to fill out the insolvency worksheet
Trying to figure out how to fill out the insolvency worksheet to fight a 1099-C i was hit with from 2012. I got a notice from the IRS about it because the credit card company (Bank of America) sent it… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
TX sales tax questions (1) Foreign company located in Germany
TX sales tax questions (1) Foreign company located in Germany wants to purchase software developed by a TX person. Does sales tax apply? (2) Can the German company apply sales tax exemption being a fo… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am a US citizen. have received various amounts of euros transferred
I am a US citizen. have received various amounts of euros transferred to my us account from my wife's uncle. the sums were to small to be taxable in the US but the Germans claim I owe them a gift tax.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was off in Dallas on 4/1/12. On 6/1/12 I was hired in
I was laid off in Dallas on 4/1/12. On 6/1/12 I was hired in Germany by a German Company who moved me to Germany and I became part of the German system and attained unlimited work status and was paid … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I received stock options from a German company, the services
I received stock options from a German company, the services of which were all earned and vested prior to my departure from Germany. Now a US resident, two years later after leaving my German residenc… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am newly American citizen and have a few questions regarding
I am newly American citizen and have a few questions regarding international taxes and American income tax… read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
If my ex-husband pays me alimony (he is German and lives in
If my ex-husband pays me alimony (he is German and lives in Germany) and I am American and live in the U.S., do I have to pay taxes on the alimony in the U.S if he does not get a tax reduction in the … read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
I am a US NAF Employee with SOFA benefits (shopping at the
I am a US NAF Employee with SOFA benefits (shopping at the PX, commissary, Gas). My wife is German and works on the economy. She pays German taxes. She filed her taxes and received a letter back askin… read more
Shawn P. Adamo
Shawn P. Adamo
CEO
Bachelor's Degree
18 satisfied customers
Subject: German Vat tax on professional services.. I am
Subject: German Vat tax on professional services.. I am an American citizen and resident all 74 tears of my life. I needed the services of an accountant in Germany regarding some German and US tax que… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Hi, My father, a citizen and resident of Germany, recently
Hi, My father, a citizen and resident of Germany, recently passed away. I am trying to find out the tax consequences for me (dual citizen and resident in the USA). My understanding is that my share of… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Hello I need to fill out an w-8ben form. I received this letter
Hello I need to fill out an w-8ben form. I received this letter from my bank in america. I have a bit worried about what i need to varify that I did not earn any money during the last few years. I had… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x